Residential prices in Prime Central London fell by 3.9% in October, the fastest rate of decline on record, according to the latest figures from Knight Frank. Since the peak of the market in March prices have fallen by 13.4%, the report states, with a six monthly decline of 12.4%.
All areas in the capital have been hit – with only minor differences in the rate of decline between houses and flats, a contrast to previous reports which found family houses in the capital maintaining their value.
Liam Bailey head of residential research at Knight Frank pointed out that it’s worth bearing in mind that although price falls seem dramatic, the rises were equally steep: ‘We ought not to be too surprised – at the height of the recent boom prices were rising by the same rate, so there is a symmetry of sorts to the current pattern of price movements.
‘There is a bright side to the price falls – they reflect the fact that vendors are now increasingly realistic about price levels and are more understanding about what prices are achievable. Whilst the market is still well down on historic sales volumes, the reassuring element is that sales volumes rose slightly during both September and October whilst prices fell sharply.
‘We do not expect the market to bounce back any time soon – but the indications are that cutting prices to sensible levels gives you a half decent chance of achieving a sale,’ he continued.